KY judge freezes Lexington Blue owner's assets. He insists he's being ‘vilified'

Yahoo

a day ago

A Kentucky judge on Monday froze the assets of the owner of the failed roofing company Lexington Blue, days after the owner said he was being 'demonized and vilified.'
Kentucky Attorney General Russell Coleman, who described the company as a Ponzi scheme, sued Lexington Blue and owner Brad Pagel on May 30. The suit came days after the Herald-Leader reported on homeowners who had paid thousands for roofing repairs that never happened before Pagel shuttered his company and disappeared.
Fayette Circuit Court Judge Diane Minnifield granted a temporary restraining order against Pagel, freezing his assets, as well as those belonging to Lexington Blue, various shell companies and Pagel's business partner, Alex Southwell.
'We are constantly on guard against predatory organizations that try to take advantage of Kentuckians, and we will hold these bad actors accountable,' Coleman said in a statement. 'We're sending a strong message to scammers that they will face serious consequences when they operate within our commonwealth.'
Pagel, who has not responded to numerous Herald-Leader requests for an interview, posted on his Facebook page, with a link to Frank Sinatra's 'My Way,' over the weekend that he has 'spent the last 10 years of my life caring for others in ways no one ever cared for me, save for a select few who saw me.
'Being Demonized and Vilified is my only worldly reward.'
Pagel said he had 'I sacrificed everything at the alter (sic) of a stupid company, trying my best to be everything to everyone I saw in need. ... The sad part is that a lot of these people have been going out of their way to destroy my entire life, anything or anyone associated with me, and crippling my ability to make things right for the very same customers they had a hand in accumulating.
'Please stop all of this! It's causing me so much more harm than you can possibly imagine!'
Former employees of Lexington Blue told the Herald-Leader that he ran the company as 'a cult' with intimidation and threats. He also went after a job applicant who posted online about his unusual encounter with Pagel during his interview.
In a now-deleted post, Pagel seemed to say that a pending bankruptcy would resolve issues for hundreds of roofing clients who said that they paid thousands for work that was never done.
'I already gave everything I had to keep everyone afloat for as long as I could and my net worth WAS the company,' Pagel wrote. 'Bankruptcy became my only option. The courts will assign the backlog and LB (Lexington Blue) will be dissolved shortly after.'
But Pagel has not filed for bankruptcy protection for himself or his businesses.
Now, under the court's order, Coleman's office is allowed to enter Lexington Blue's offices at 287 Pasadena Drive to copy records, including any electronic files.
Pagel and Lexington Blue are restrained from soliciting any new roofing business or requesting additional money from current customers.
According to documents filed Friday by Coleman's office, 'Lexington Blue may have accepted deposits from between 300 and 429 consumers without delivering services. In 2024 alone, it accepted $4.8 million in consumer payments for 329 projects, the majority of which appear unfulfilled.'
Coleman's office said the actions 'go beyond poor management — they appear more like a coordinated scheme to defraud. ... Additionally, the company's financial practices are more akin to a Ponzi scheme: new consumer deposits were used to refund or partially complete older contracts, while substantial funds were diverted for personal gain.
'As with any Ponzi scheme, this practice eventually led to the fraud's escalation and Lexington Blue's collapse.'
Attorney General Coleman said in a news release he encourages anyone who needs assistance with Lexington Blue to contact his office at 888-432-9257.
Lexington roofer, under investigation by Kentucky Attorney General, shuts down